Cassano, Francesca, Jõeveer, Karin and Svejnar, Jan (2013) Cash flow vs. collateral-based credit: performance of micro, small and medium-sized firms in transition economies. Economics of Transition, 21 (2). pp. 269-300. ISSN 0967-0750
Full text not available from this repository.Abstract
We study factors affecting micro, small and medium-sized enterprises (MSMEs) receiving loans and the effect of these loans on MSMEs performance. We study two types of loans - a new type based on cash flows and a traditional-style loan based on collateral. We use unique surveys of MSMEs from Bulgaria, Georgia, Russia and Ukraine. We find that MSMEs receiving a cash flow or collateral loan in the past are more likely to receive the same type of loan (and larger sized) in the future and that cash flow loans may be the preferred form of credit. Both types of loans are related positively to most performance indicators, enabling the MSMEs for instance to be more profitable and expand production. The cash flow loans also appear to be particularly attractive credit delivery schemes for micro and small enterprises. Finally, the effects of the smallest loans are often negative, suggesting that the minimum loan size is an important policy issue.
| Item Type: | Article |
|---|---|
| Additional Information: | © 2013 The Authors |
| Divisions: | Financial Markets Group |
| Subjects: | H Social Sciences > HB Economic Theory |
| Date Deposited: | 05 Apr 2013 13:10 |
| Last Modified: | 20 Nov 2024 22:15 |
| Projects: | P402/10/2130 |
| Funders: | Grant Agency of the Czech Republic |
| URI: | http://eprints.lse.ac.uk/id/eprint/49610 |
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